The California drivers filed the lawsuit for the right to be classified as employees, but they unfortunately failed to achieve that goal. Lyft claims a recent survey revealed that 80 percent of its drivers prefer to be independent contractors due to the flexibility it allows. But the plaintiffs filed the lawsuit, because as employees, Lyft would have been required to pay for their gas and vehicle maintenance. As Judge Chhabria said, “The agreement is not perfect. And the status of Lyft drivers under California law remains uncertain going forward.”

They get some degree of protection, though, thanks to some of the settlement’s terms. Lyft can’t drop them unless it’s for one of the company’s list of predetermined reasons, such as low passenger ratings. They’ll also get bonuses if they consistently perform well.